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Chevron (CVX) Stock Declines While Market Improves: Some Information for Investors

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Chevron (CVX - Free Report) closed the most recent trading day at $156.13, moving -0.84% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.

Coming into today, shares of the oil company had lost 2.98% in the past month. In that same time, the Oils-Energy sector lost 1.23%, while the S&P 500 gained 3.2%.

Market participants will be closely following the financial results of Chevron in its upcoming release. In that report, analysts expect Chevron to post earnings of $3.58 per share. This would mark year-over-year growth of 16.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $52.66 billion, up 7.69% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.57 per share and revenue of $207.75 billion, which would represent changes of +3.35% and +3.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Chevron. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% upward. Chevron is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Chevron is currently being traded at a Forward P/E ratio of 11.6. This denotes a premium relative to the industry's average Forward P/E of 7.39.

We can also see that CVX currently has a PEG ratio of 2.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.82 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CVX in the coming trading sessions, be sure to utilize Zacks.com.


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